How to Transfer Shares From One Demat to Another Account Online
Shifting Demat accounts is something many investors may be required to do in case of scenarios like changing brokers, consolidating holdings, fees saving and better access to services. If you are a first-time investor, the question can we transfer shares from one demat account to another? may arise. Fortunately, you can transfer shares from one Demat account to another in a easy manner both in offline and online mode. This blog will explain in simple terms on how to transfer shares from one demat to another in a easy manner and dive in depth regarding this topic.
Why Transfer Shares?
- Account consolidation: Manage all your holdings in one place
- Better brokerage plans: Switching to lower AMC or trading costs
- System convenience: Working with your current broker’s platform
- Lifestyle changes: Moving cities or updating brokers
And good news—transfer is mostly seamless and typically free, provided both accounts have the same ownership pattern and depository (NSDL or CDSL)
Two Ways to Transfer Shares: Offline vs. Online
1. Offline Method (Using Delivery Instruction Slip – DIS)
Ideal if you prefer paperwork or your broker doesn’t support online transfer.
Steps:
- Request a DIS booklet from your current broker.
- Fill details:
- Sign as per account type (single/joint).
- Submit to broker—get a stamped copy as proof.
- Broker sends DIS to DP, who processes your instruction.
- Shares appear in the target Demat account in 2–4 business days
Tips to avoid mistakes:
- Match account holder names and sequence exactly.
- Cross-check ISIN carefully.
- Keep the stamped copy for reference.
- Ensure “off-market” vs “inter-depository” is correct.
How to transfer shares from one demat to another Online Method (via CDSL EASIEST / NSDL IAT)
Most convenient and paperless.
Steps:
- Register on CDSL EASIEST or NSDL IAT portal via current broker
- Add your beneficiary Demat account as a trusted recipient. You’ll need holder’s PAN, DP ID, and BO ID.
- (CDSL) Accept verification link emailed by CDSL
- Schedule share transfer online—select ISINs and number of shares. Choose date.
- Approve with OTP/TPIN. Submit.
- The transfer completes in 1–2 business days.
This streamlines the entire process, skipping paper and manual slips.
Intra-Depository vs Inter-Depository
Checks Before You Transfer
- Ownership consistency: Same names & sequence in both accounts sebi.gov.in.
- Active accounts: No restrictions or freeze in either Demat.
- DIS booklet availability: Ask in advance—especially for offline transfers.
Charges & Tax Details
- Charges: Free for off-market when account closed, else ₹10–₹30 per transfer; inter-depository may be slightly higher
- Tax: Pure transfers within the same name are non-taxable. If gifted, consider gift tax/LTCG rules .
Timeline: How Long Does It Take?
- Offline, Intra-Depository: 1–3 working days.
- Offline, Inter-Depository: 3–5 days.
- Online: Usually 1–2 days
Common Pitfalls & Mistakes
- ISIN errors—transactions rejected.
- Wrong DP/BO ID or ownership mismatch.
- Missing signatures on DIS.
- Not verifying via OTP (for online).
- Leaving old account active—forget to close or maintain zero balance.
What to Do After You’ve Transferred Shares
Once your shares have been successfully transferred to the new demat account, there are a few important tasks to complete to ensure everything is in order.
Verify Share Holdings:
Login to your new demat account and check if all transferred securities are correctly reflected. Confirm quantities, company names, and ISIN codes. If there are discrepancies, one must contact their broker or depository participant immediately for resolution.Consider Closing the Old Account:
If you don’t plan to use the previous demat account anymore, it’s a good idea to close it. This avoids unnecessary maintenance charges and helps you consolidate your investments. Most brokers provide a closure form that you can submit along with a final delivery instruction slip to transfer any residual holdings.Update Your Records:
It’s crucial to align one’s investment records, tax documentation, and portfolio tracking tools with their new demat account. This aids in preventing confusion during tax filing or while checking capital gains in the future period.Check Nominee Registration:
Nominee details may not automatically move to your new account. Ensure you register or update the nominee in the new demat account to protect your investments in unforeseen situations.
Partial Transfers and Portfolio Segmentation
Not all investors transfer their entire portfolios. Some prefer to shift only specific shares to better organize their investments. Common reasons include:
- Separating long-term and short-term holdings
- Managing tax liability by segmenting stocks by purpose
- Consolidating high-dividend stocks in one account for easier tracking
Both full and partial transfers follow a similar process. However, accuracy becomes even more critical when selecting only certain securities to transfer.
Are There Any Limits on Transfers?
There’s no stern limit on how many shares or securities one can transfer from one demat account to another , but some brokers have the right to set practical limits based on their own internal policies.
- Volume-Based Restrictions: Some online platforms can restrict the number of stocks one can transfer in single session.
- Offline Transfers for Large Portfolios: If one is transferring a high volume of shares, an offline process using a physical Delivery Instruction Slip could be a more efficient option.
- Charges Vary: Depending on the broker, fees is usually waived for large portfolio transfers or account closinsg.One must check this in advance and be informed
What to Do After Completing a Demat Transfer
Once the shares are done moving from one demat account to another, it’s important not to treat the process as “done and dusted” scenario. There are certain crucial steps one should take to ensure everything is in order.
- Cross-check Your New Demat Holdings
One must log in to their new demat account and carefully verify and analyse whether all transferred securities have been credited properly. This includes checking the number of shares one holds, company details , and ISIN codes. Any mistake , even a small one , should be reported to the new broker with immediate effect. - Decide Whether to Close the Old Demat Account
If one is no longer in need of their previous demat account, they must consider closing it in order to avoid unnecessary maintenance fees. Many investors forget the fact that inactive accounts still have annual charges. Contact the broker to submit an account closure form and remember ot transfer any residual pending holdings. - Review and Update Nominee Details
A common oversight after transferring shares is forgetting to assign a nominee in the new account. Nomination ensures that your investments are passed on without legal hurdles in case of any mishap. If it wasn’t automatically updated, file a nominee registration form with your new depository participant. - Save Investment Proofs and Statements
One must download important account statements, summaries of their trades, and transaction reports from their old account before closing it. These documents are helpful when tracking historical data and calculating capital gains later on for tax purposes.
Can You Transfer Only Some Shares?
Yes, partial share transfers are common. You don’t have to shift everything from one demat account to another. Some investors prefer to maintain different accounts for different investment goals—say, one for long-term holdings and another for trading.
To do this:
- Specify the exact securities you want to move
- Use an instruction slip or online portal accordingly
- Track the execution date and cross-check only those entries in the new account
This way, you maintain better portfolio clarity.
Extra Tips for a Smooth Share Transfer
To avoid common pitfalls, keep these things in mind:
- Start early: Transfers may take a couple of working days. Don’t wait until you’re mid-transaction or approaching a record date (for dividends or splits).
- Match names: The name on both demat accounts must be identical. Discrepancies can result in rejections.
- Avoid errors on slips: For offline transfers, any error in ISIN code or share quantity might delay the transfer.
Conclusion:
Transferring shares is simply moving your digital stock assets from one account to another. When how to transfer shares from one Demat account to another is broken down into clear steps—offline vs. online, intra- vs inter-depository—the process becomes logical and safe. With proper care—correct forms, ownership details, verification steps—you can easily shift your holdings in just a few days.
If you’re planning to switch brokers, using a closure-cum-transfer gives you the added benefit of automated transfer and account closure—often for free. To save time and paper, the online route via CDSL EASIEST or NSDL IAT is the best option.
By following these steps, you ensure your investments remain secure, consolidated, and aligned with your financial goals. If you’re ready for a smoother Demat transition, start by exploring online transfer options today!
Also Read : 5 Mistakes Traders Make in Algo Trading in India
FAQ'S
Can we transfer shares from one Demat account to another?
Yes.Transfers within the same holder are allowed and non-taxable if accounts match
How to transfer shares from one Demat to another online?
Use CDSL EASIEST or NSDL IAT—register online, add the beneficiary, schedule, and approve via OTP.
How to transfer shares from one Demat to another manually?
Fill a Delivery Instruction Slip (DIS), submit to your broker, and wait 2–4 days for processing
Can I gift shares to someone else?
Yes, via off-market transfer, but this may trigger gift tax or gift deed documentation.
Will share transfer attract tax?
No, if it’s between accounts of same person. Transfer to others may have tax implications depending on holding period.
